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V0972-25 6 June 2025 · SG de Tributos Locales Criterion in force
OTRO · iivtnu

No VAT on property contributions if part of business activity

A real estate leasing company asks whether contributing its assets to another entity during a capital increase is subject to IIVTNU. The DGT responds that exemption depends on the properties being part of a business activity.

The question raised

Taxation in the tax of the described restructuring operation.

The DGT's ruling

The non-accrual of the IIVTNU in transfers derived from business restructuring operations is conditional upon the contributed land being integrated into a line of business. If these circumstances are not met, the tax shall accrue on the transfer of urban land, with the contributing company being the taxable person.

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